UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
The First Australia Fund, Inc.
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(Name of Issuer)
Common Stock ($.01 par value)
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(Title of Class of Securities)
318652104
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(CUSIP Number)
Sander M. Bieber
Dechert Price & Rhoads
1775 Eye Street, N.W.
Washington, DC 20006
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
June 1, 1999
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the Schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on the following pages)
<PAGE>
CUSIP No. 318652104 13D Page 2 of 8
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1 Name of Reporting Person
I.R.S. Identification No. of Above Person
Laurence Freedman
I.R.S. No.
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2 Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
AF, PF
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5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
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6 Citizenship or Place of Organization
Australia
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7 Sole Voting Power
Number of None
Shares -----------------------------------------------------
Beneficially 8 Shared Voting Power
Owned by 1,674,689
Each -----------------------------------------------------
Reporting 9 Sole Dispositive Power
Person None
With -----------------------------------------------------
10 Shared Dispositive Power
1,674,689
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
1,674,689
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12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
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13 Percent of Class Represented by Amount in Row (11)
9.7%
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14 Type of Reporting Person
IN
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<PAGE>
CUSIP No. 318652104 13D Page 3 of 8
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1 Name of Reporting Person
I.R.S. Identification No. of Above Person
Brian Sherman
I.R.S. No.
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2 Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
AF, PF
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5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
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6 Citizenship or Place of Organization
Australia
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7 Sole Voting Power
Number of None
Shares -----------------------------------------------------
Beneficially 8 Shared Voting Power
Owned by 1,674,689
Each -----------------------------------------------------
Reporting 9 Sole Dispositive Power
Person None
With -----------------------------------------------------
10 Shared Dispositive Power
1,674,689
-----------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
1,674,689
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12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
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13 Percent of Class Represented by Amount in Row (11)
9.7%
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14 Type of Reporting Person
IN
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<PAGE>
CUSIP No. 318652104 13D Page 4 of 8
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1 Name of Reporting Person
I.R.S. Identification No. of Above Person
EquitiLink Limited
I.R.S. No.
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2 Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
AF, WC
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5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
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6 Citizenship or Place of Organization
New South Wales, Australia
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7 Sole Voting Power
Number of None
Shares -----------------------------------------------------
Beneficially 8 Shared Voting Power
Owned by None
Each -----------------------------------------------------
Reporting 9 Sole Dispositive Power
Person None
With -----------------------------------------------------
10 Shared Dispositive Power
None
-----------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
None
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12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
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13 Percent of Class Represented by Amount in Row (11)
0.0%
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14 Type of Reporting Person
HC, CO
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<PAGE>
CUSIP No. 318652104 13D Page 5 of 8
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1 Name of Reporting Person
I.R.S. Identification No. of Above Person
EquitiLink U.S.A., Inc.
I.R.S. No. 521635331
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2 Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
AF
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5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
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6 Citizenship or Place of Organization
Delaware
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7 Sole Voting Power
Number of None
Shares -----------------------------------------------------
Beneficially 8 Shared Voting Power
Owned by 1,624,627
Each -----------------------------------------------------
Reporting 9 Sole Dispositive Power
Person None
With -----------------------------------------------------
10 Shared Dispositive Power
1,624,627
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
1,624,627
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12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
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13 Percent of Class Represented by Amount in Row (11)
9.5%
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14 Type of Reporting Person
CO
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<PAGE>
Page 6 of 8
This Amendment No. 1 amends and supplements Items 3, 5 and 7 of the Schedule 13D
of the Reporting Persons with respect to the shares of common stock, par value
$.01 per share of the First Australia Fund, Inc. (the "Fund") as originally
filed on April 1, 1999.
Item 3. Source and Amount of Funds or Other Consideration.
The shares of Common Stock acquired by EquitiLink U.S.A. were acquired for
an aggregate purchase price of approximately $8.78 million, of which
approximately $1.63 million was paid by EquitiLink U.S.A. to EquitiLink Limited
on June 15, 1999. The source of funds for the initial payment of $1.63 million
was a capital contribution to EquitiLink U.S.A. from EIML with funds obtained
through EIML's existing commercial credit facility with HSBC Bank Australia
Limited. The remainder of the purchase price will be paid in full to EquitiLink
Limited on or before December 31, 1999. The source of funds for the balance of
the purchase consideration will be in the form of additional capital
contributions from EIML to EquitiLink U.S.A. and may include funds borrowed by
EIML.
Item 5. Interest in Securities of the Fund.
(a) The Reporting Persons beneficially own an aggregate of 1,678,689
shares of Common Stock, constituting approximately 9.8% of the outstanding
shares of Common Stock (computed on the basis of 17,189,998 shares of Common
Stock outstanding as of April 30, 1999 as reported in the Fund's semi-annual
report). In the aggregate, all persons named in Item 2 and Annex A hereto, which
is incorporated herein by reference, beneficially own 1,679,254 shares of Common
Stock, which represents 9.8% of the outstanding shares of Common Stock.
(b) Each of Laurence Freedman, Brian Sherman and Richard Strickler
owns 4,000, 4,000 and 565 shares of Common Stock, respectively, with sole voting
and dispositive power for all such shares. Messrs. Freedman and Sherman each
share voting and dispositive power with each of EquitiLink U.S.A. and EIML, with
respect to 1,624,627 and 46,062 shares of Common Stock, respectively.
(c) During the past sixty days, EquitiLink U.S.A. has purchased
1,171,227 shares of Common Stock in a privately negotiated transaction. On June
1, 1999, EquitiLink U.S.A. agreed to purchase 1,171,227 shares of Common Stock
from EquitiLink Limited at a price of $7.50 per share. The Agreement is attached
as Exhibit 4.
<PAGE>
Page 7 of 8
(d) Not applicable.
(e) EquitiLink Limited ceased to be a beneficial owner of more than
five percent of the Common Stock on June 1, 1999.
Item 7. Materials to be Filed as Exhibits.
Exhibit 4. Agreement, dated June 1, 1999, between EquitiLink U.S.A. and
EquitiLink Limited.
<PAGE>
Page 8 of 8
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement with respect to the
undersigned is true, complete and correct.
Date: July 9, 1999
Laurence Freedman
/s/ Laurence Freedman
-------------------------------------------
Brian Sherman
/s/ Brian Sherman
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EquitiLink Limited
By: /s/ Barry Sechos
--------------------------------------
Name: Barry Sechos
Title: Director
EquitiLink U.S.A., Inc.
By: /s/ David Manor
--------------------------------------
Name: David Manor
Title: Director
<PAGE>
EXHIBIT 4
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STOCK PURCHASE AGREEMENT
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AGREEMENT, dated 1 June 1999 (the "Agreement"),
Between EQUITILINK USA, INC (the "Purchaser"); and
EQUITILINK LIMTED (the "Seller").
1. PURCHASE AND SALE
The Seller agrees to sell to the Purchaser, and the Purchaser agrees to
purchase from the Seller, upon the terms and subject to the conditions
hereinafter set forth, 1,171,227 shares of common stock, par value $.01
per share (the "Fund Common Stock") of The First Australia Fund, Inc.,
a Maryland corporation (the "Fund"), (the "Shares"), at a total price
of A$13,462,379.31 (the "Purchase Price").
The Purchase Price shall be paid in instalments with an initial payment
of A$2,500,000 within 30 days of the execution of this Agreement with
the balance payable in full on or before 31st December 1999. In
consideration of the Seller's agreement to this deferred payment, the
Purchaser agrees to pay to the Seller, all dividends received by it on
such of the parcel of Shares as represents the outstanding purchase
consideration
2. SELLER'S REPRESENTATIONS AND WARRANTIES
The Seller represents and warrants to the Purchaser that:
(a) the Seller is duly authorized to execute and deliver this
Agreement and this Agreement is a valid and binding agreement,
enforceable against the Seller in accordance with its terms; and
neither the execution of this Agreement nor the sale of the Shares
will contravene any provision of applicable law or any judgement,
order or decree of any governmental agency or court having
jurisdiction over the Seller or any of its assets or will
constitute a violation of, or conflict with, or default under, any
contract, commitment, agreement, understanding or arrangement to
which the Seller is a party or by which the Seller or any of the
Shares is bound;
(b) at the Closing (as hereinafter defined), the Seller will deliver
valid and marketable title to such Shares free and clear of all
claims, liens, charges, encumbrances, security interests and
restrictions on disposition by the Seller, and will transfer such
Shares to the Purchaser free and clear of all claims, liens,
charges, encumbrances and security interests, with full power to
vote such Shares at all meetings of stockholders of the fund; and
(c) the Seller will, upon request of the Purchaser, promptly execute
and deliver or cause to be executed and delivered all additional
documents reasonably deemed by the Purchaser to be necessary,
appropriate or desirable to complete and evidence the sale,
assignment and transfer of the Shares pursuant to this Agreement.
<PAGE>
3. PURCHASER'S REPRESENTATIONS AND WARRANTIES
The Purchaser represents and warrants to the Seller that the Purchaser
is duly authorized to execute and deliver this Agreement and that this
Agreement is a valid and binding agreement, enforceable against the
Purchaser in accordance with its terms; and neither the execution of
this Agreement nor the purchase of the Shares will contravene any
provision of applicable law or any judgement, order or decree of any
governmental agency or court having jurisdiction over the Purchaser or
any of its assets or will constitute a violation of, or conflict with,
or default under, any contract, commitment, agreement, understanding or
arrangement to which the Purchaser is bound.
4. CLOSING
The closing of the purchase and sale of the Shares contemplated hereby
(the "Closing") shall take place within 5 days of the date of this
Agreement, or such other time as the parties may mutually agree. At the
Closing:
(i) the Seller will sell, transfer and deliver the Shares,
represented by certificates duly endorsed in blank; and
(ii) the Purchaser will purchase the Shares and deliver to the
Seller a certified or official bank cheque payable to or upon
the order of the Seller, or wired funds in the discretion of
the Seller, in the amount of A$2,500,000 with the balance
payable inaccordance with Clause 1 above.
5. DIVIDENDS, ETC.
Subject to Clause 1 above, any dividend or other distribution (cash,
stock or otherwise) on the Shares with a record date on or after the
date of this Agreement will be for the account of the Purchaser and
will be delivered on the later of the date of receipt thereof or the
date of the Closing. Any dividend or other distribution (cash, stock or
otherwise) on the Shares with a record date prior to the date of this
Agreement will be for the account of the Seller.
6. EXPENSES
Each party hereto shall pay its own expenses incurred in connection
with this Agreement.
7. SURVIVAL
All representations, warranties and agreements made by the Seller and
by the Purchaser in this Agreement shall survive the Closing hereunder
and any investigation at any time made by or on behalf of any party
hereto.
<PAGE>
8. NOTICES
All notices, claims, requests, demands and other communications
hereunder will be in writing, will be deemed effective upon receipt and
shall be given as follows:
If to the Purchaser, to: If to the Seller, to:
Mr. David Manor Mr Barry Sechos
EquitiLink USA, Inc EqutiLink Limited
C/- PO Box 578 Level 3 190 George Street
17 Bond Street SYDNEY NSW 2000
Jersey JE4 5XB
Channel Islands U.K
Facsimile: 44 1534 638 002 Facsimile: 61 2 9950 2233
or such other address as the person to whom notice is to be given may have
previously furnished to the others in writing in the manner set forth above
(provided that notice of any change of address shall be effective only upon
receipt thereof).
9. MISCELLANEOUS
This Agreement may not be modified, amended, altered or supplemented
except upon the execution and delivery of a written agreement executed
by the parties hereto. No party to this Agreement may assign any of its
rights or obligations under this Agreement without the prior written
consent of the other party, except that the rights and obligations of
the Purchaser may be assigned by the Purchaser to a third party, but no
such transfer shall relieve the Purchaser of its obligations hereunder
if such transferee does not perform such obligations. This Agreement
may be executed in two or more counterparts, each of which will be
deemed to be an original but all of which together will constitute one
and the same instrument. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York
(regardless of the laws that might otherwise govern under applicable
New York principals of conflicts of law).
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by a
duly authorized officer of the Purchaser and Seller on the day and year first
written above.
By: EQUITILINK LIMITED
/s/ Barry Sechos
-------------------------
Name: Barry Sechos
Title: Director
By: EQUITILINK USA, INC
/s/ David Manor
-------------------------
Name: David Manor
Title: Director
